Forex > Foreign Currency Telegraphic Transfer (SWIFT)

Foreign Currency Telegraphic Transfer (SWIFT)

SWIFT is the fastest and most secure mode of transmission of financial messages between Banks and Institutions. CSB provides the service to its customers for transmission of foreign currency funds to anywhere in the world for all eligible outward remittances in shortest possible time. This is also the cheapest and most popular mode of fund transfer.

Features and Benefits

  • Faster and Hassle-free Fund Transfer
    The money transferred through SWIFT wire transfer mode is expected to be credited to the beneficiary account within 48-72 hours. To make an Outward Remittance you have to just walk into any of our branches with necessary documents and initiate fund transfer.
  • Safe and Secure
    Fund transfers are made through safe and secure channels.
  • Choice of multiple currencies
    CSB can send money overseas in 9 different currencies through SWIFT.
  • Competitive Exchange Rates
    We facilitate International fund transfers at competitive exchange rates.

Liberalised Remittance Scheme (LRS)

As per A.P. (DIR Series) Circular No.106 dated 1st June 2015, RBI has increased the limit under Liberalised Remittance Scheme for Resident Individuals from USD 1,25,000 to USD 2,50,000. Accordingly, remittances up to USD 2,50,000 per financial year per individual under the Scheme may be allowed for any permitted current or capital account transaction or a combination of both.

Eligibility:

  • All Resident individuals are eligible to avail of the facility under the scheme. This facility is not available to Corporates, Partnership firms, HUF, Trusts etc.
  • USD 2,50,000 or equivalent per individual per financial year.

Purpose

  • Current Account Transactions
    1. Private visits to any country (except Nepal and Bhutan)
    2. Gift or Donation
    3. Going abroad for employment
    4. Emigration
    5. Maintenance of close relatives abroad
    6. Travel for business, or attending a conference or specialized training or for meeting expenses for meeting medical expenses, or check-up abroad, or for accompanying as attendant to a patient going abroad for medical treatment/check-up
    7. Expenses in connection with medical treatment abroad
    8. Studies abroad
    9. Any other current account transaction.
  • Capital Account Transactions
    1. Opening of Foreign Currency Account abroad with a bank.
    2. Remittances for investment in Purchase of Property.
    3. Remittance towards Investments abroad (both listed and unlisted shares of an overseas company).
    4. Set up Joint Ventures (JV) / Wholly Owned Subsidiaries (WOS) by individuals outside India for bonafide business activities outside India (with effect from August 5, 2013).
    5. Extending loans including loans in Indian Rupees to Non-Resident Indians (NRIs) who are relatives as defined in Companies Act, 2013.

Exceptions

For the purposes Emigration, Expenses in connection with medical treatment abroad and Studies abroad, the individual may avail of exchange facility for an amount in excess of the limit prescribed under the Liberalised Remittance Scheme as provided in regulation 4 to FEMA Notification 1/2000-RB, dated the 3rd May, 2000 if it is so required by a medical institute offering treatment or the university or country of emigration, respectively.

Documents Required

  • This scheme is applicable for all Resident Individuals including minors.
  • It is mandatory for all Resident Individuals to register their PAN with the bank for successful Outward Remittance transactions.
  • Remittances under the scheme can be consolidated in respect of family members subject to individual family members complying with its terms and conditions.
  • Remittances under the scheme are allowed only in respect of permissible current or capital account or a combination of both.
  • Resident Individuals are free to acquire and hold shares or debt instruments or any other asset including immovable property outside India without prior approval from RBI.
  • This limit is also applicable for Current Account transactions available to Resident Individuals.
  • Remittances under the scheme can be used for purchasing objects of art subject to the provisions of other applicable laws.
  • The scheme can also be used for Remittance as Funds for acquisition of ESOPS.
  • A resident individual can also invest in Mutual Funds, Capital Funds, unrated debt securities, promissory notes etc. under this scheme. He can also invest in securities out of the bank account opened abroad under the same.
  • This scheme also includes repayment of loans that have been availed abroad while as a non-resident upon return to India under this scheme.
  • The scheme can be used for Outward Remittance in the form of a Demand Draft in the resident individual’s own name or in the name of the beneficiary with whom he intends putting through the permissible transactions at the time of private visit abroad, against self-declaration of the remitter in the prescribed format.
  • With effect from August 2013, this scheme can be used by Resident individuals to set up Joint Ventures or wholly owned subsidiaries outside India for bonafide business activities subject to applicable laws.
  • Individuals can open, maintain and hold foreign currency accounts with a bank outside India for making remittances under the scheme without prior approval from RBI.
  • This scheme is not available for capital account remittances to countries identified by Financial Action Taskforce.
  • An Investor who has remitted funds under LRS can retain and reinvest the income earned on the investments.
  • Resident Individual can also lend to a Non-Resident/Person of Indian Origin/Close Relatives upon filling certain conditions.